In a scathing public critique of Fairfax chairman Corbet Ms Rinehart combines subtle insults with sledge hammer blows. Fairfax directors now know what it was like for WWII Wehrmact commanders when General Patton approached.
"The milestone we propose is that the Fairfax Media weighted average trade share price increase from current levels to 87c per share prior to the AGM, which would represent only a 50% loss from the commencement of your chairmanship in 2009." (My italics)
"And if the five year decline in paid cirdulation and in revenue of the Fairfax mastheads do not reverse prior to the 2012 AGM, we ask for your rresignation at that meeting."
Roger, although you are only a 0.004% shareholder, you have extraordinary power.as Chairman, derived from the Fairfax Media Board Governance Principles (FMBGP) you insisted I comply with. This power includes being able to prevent directors from receiving professional advice and prevent directors from being able to discuss Fairfax Media matters with senior Fairfax executives or others.
Not just an 'ouch' blow, this last hit will prove fatal as it reveals publicly and for the first time that the directors were in fact at odds with the Australia version of the Companies Act, which requires them to be fully informed on matters pertaining to their decisions as directors.
Update: See sections 190 and 191 of the Corporations Act 1981.
They signed away their obligations to shareholders and handed complete and unfettered power to a weak kneed autocratic Chairman who, it turns out, himself fired an editor opining on matters political in a way of which the Chairman did not approve.
So much for all the vacuoous squealing from the left about 'editorial independence.'
Adolf looks forward to a rash or board resignations or, in their absence, legal proceedings against directors for failure to exercise their fiduciary duty.
How strange it is that there has been NOTHING in the Fairfax media about this extraordinary FMBGP document which essentially renders all the directors who signed it and the Chairman who instigated it liable for some potentially long tax payer funded holidays.